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Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

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Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
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Vonage Holdings Launch Internet Telephony Service


Vonage In Print News

Vonage Holdings Launch Internet Telephony Service
Offers Standard Features: To Compete with Primus; Others Readying In Wings


April 13, 2004

By Mark Evans

Consumers looking to jump on the Internet telephony bandwagon now have another option after Vonage Holdings Corp. launched its much-speculated service in Canada yesterday.

The Edison, N.J.-based company said the service, which uses Voice over Internet Protocol technology to send voice traffic over high-speed networks, will cost $19.99 to $45.99 a month. The service includes such features as voice mail, call waiting, caller ID, and the ability to choose from 14 local area codes in 13 markets.

The move by Vonage, the brainchild of chief executive Jeffrey Citron, into Canada adds another player into the increasingly competitive Voip market, which picked up momentum in January when Primus Telecommunications Canada Inc. rolled out the first Voip service.

Yak Communications Inc., AOL Canada Inc. and Shaw Communications Inc. are expected to enter the fledgling market later this year. Rogers Cable Inc. is talking about offering Voip service next year while Bell Canada is doing internal technology testing.

As Voip makes inroads, the Canadian Radio-television and Telecommunications Commission is working to establish a new regulatory framework. Last week, the CRTC said it is leaning toward regulating incumbent carriers such as Bell Canada and Telus Corp. while letting competitive carriers such as Vonage set their own prices.

This preliminary approach reflects the CRTC's mandate to encourage competition in a market that, until recently, had been tightly controlled. Not surprisingly, the incumbent carriers are pointing to Voip and new rivals such as Primus as a sign competition is vibrant so regulatory restrictions should be loosened.

The CRTC is accepting submissions about Voip until April 28, and it will hold a two-day discussion session May 19-20. It expects to unveil regulations in the fourth quarter.
One of the challenges facing Internet telephony providers is Canada's inexpensive local service prices due to CRTC policies, which eliminate a key marketing tool -- lower prices -- used by Vonage in the United States to attract more than 135,000 customers.

Lou Holder, Vonage's executive vice-president of product development, said the company hopes to appeal to Canadian consumers by offering such standard features as voice mail provided by incumbent carriers for a monthly fee.
"The timing to launch in Canada is better now that we have a better feature base," he said. "That makes it more compelling."

Vonage's partner in Canada is GT Group Telecom Services Corp., which is providing it with switching and transmission services and Canadian telephone numbers. GT is a unit of 360networks Corp.

Despite the hype surrounding VoIP, Frost & Sullivan analyst Jon Arnold said Voip is mostly being used by consumers who want an inexpensive second phone line and low-cost long-distance service.

"We are a long way from there being mass adoption," he said. "That will never happen until the telcos get behind it."

An obstacle Voip providers must overcome is improving the user-friendliness of Internet telephony technology. Voip is currently the domain of technology-savvy individuals with high-speed Internet connections. It is far from being a service used in multi-member households with several phones.

This has not prevented Vonage, which was started in 1999, from raising more than US$105-million of private equity.
The company was founded by Mr. Citron, who also launched The Island ECN, which was sold to the Instinet Group for US$503-million, and Datek Online Holdings Corp., which was acquired by Ameritrade Holdings Inc. for US$1.3-billion.



 
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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

** Certain call types excluded.

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